Negotiations

You may have heard the legend that Van Halen used to demand a supply of M&Ms backstage at their concerts, with all the brown M&Ms removed. Well, it turns out the legend is true. As was recently found by The Smoking Gun, the demand was written into the band’s performance contract, and promoters were actually contractually obligated to remove the brown M&Ms. The request could easily be written off as bratty behavior of diva rock-stars, but there is more to it. Read the rest of this entry »

Being a great negotiator takes discipline. Below is a list of guidelines for success created from experience negotiating technology licensing agreements, and interacting with business development professionals.

Never fall in love with a deal
Whether we admit it or not, almost all decision making is done at an emotional level, with facts and data used to rationalize the decision. That may not be so bad when buying a car, but business deals need to be as emotionlessly calculated as humanly possible. You must be prepared to walk away. Falling in love with a deal can lead to what is known as the “winner’s curse.” Bidding high to win a deal leads to the winner overpaying. Let judgment win over emotion.

Don’t believe the numbers
They’re wrong. No matter how scientifically derived the financial projections are…they’re wrong. You need to know the potential of what you’re buying, but don’t give the numbers too much credit. Read the rest of this entry »